CloudMD Software & Services (TSXV:DOC) - Share price, News & Analysis

Q: What is the Fair Price of DOC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DOC (CA$0.42) is trading below our estimate of [[fair value]] (CA$0.56)

DOC fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

DOC Stock Overview

CloudMD Software & Services Inc. operates as a healthcare technology company in North America.

Rewards

Trading at 26% below our estimate of its fair value

Revenue is forecast to grow 14.99% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$122M)

CloudMD Software & Services Competitors

Premier Health of America

TSXV:PHA

CA$32.4m

Empower Clinics

CNSX:CBDT

CA$38.3m

Quipt Home Medical

TSXV:QIPT

CA$204.4m

Akumin

TSX:AKU

CA$64.5m

Price History & Performance

Summary of all time highs, changes and price drops for CloudMD Software & Services
Historical stock prices
Current Share Price	CA$0.41
52 Week High	CA$2.35
52 Week Low	CA$0.36
Beta	1.7
1 Month Change	1.22%
3 Month Change	-48.77%
1 Year Change	-79.46%
3 Year Change	36.07%
5 Year Change	n/a
Change since IPO	-66.80%

Recent News & Updates

Jun 20

CloudMD Software & Services Inc.'s (CVE:DOC) Intrinsic Value Is Potentially 39% Above Its Share Price

In this article we are going to estimate the intrinsic value of CloudMD Software & Services Inc. ( CVE:DOC ) by taking...

Shareholder Returns

	DOC	CA Healthcare	CA Market
7D	-3.5%	3.4%	0.3%
1Y	-79.5%	-33.7%	-4.0%

Return vs Industry: DOC underperformed the Canadian Healthcare industry which returned -33.7% over the past year.

Return vs Market: DOC underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is DOC's price volatile compared to industry and market?
DOC volatility
DOC Average Weekly Movement	12.7%
Healthcare Industry Average Movement	8.5%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: DOC is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: DOC's weekly volatility (13%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	n/a	Karen Adams	https://investors.cloudmd.ca

CloudMD Software & Services Inc. operates as a healthcare technology company in North America. The company operates through three segments: Clinic Services & Pharmacies, Digital Health Services, and Enterprise Health Solutions. It offers enterprise health solutions, including mental health support, healthcare navigation, rehabilitation and assessments, education, and absence management and occupational health.

CloudMD Software & Services Fundamentals Summary

How do CloudMD Software & Services's earnings and revenue compare to its market cap?
DOC fundamental statistics
Market Cap	CA$121.90m
Earnings (TTM)	-CA$31.08m
Revenue (TTM)	CA$134.93m

0.9x

P/S Ratio

-4.0x

P/E Ratio

Is DOC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DOC income statement (TTM)
Revenue	CA$134.93m
Cost of Revenue	CA$91.01m
Gross Profit	CA$43.92m
Other Expenses	CA$75.01m
Earnings	-CA$31.08m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.10
Gross Margin	32.55%
Net Profit Margin	-23.03%
Debt/Equity Ratio	9.6%

How did DOC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is DOC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DOC. This is calculated by dividing DOC's market cap by their current preferred multiple.
What is DOC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$121.90m

DOC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	-11.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DOC's PS Ratio compare to its peers?

DOC PS Ratio vs Peers

The above table shows the PS ratio for DOC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.6x
PHA Premier Health of America	0.4x	20.9%	CA$32.4m
CBDT Empower Clinics	4.8x	n/a	CA$38.3m
QIPT Quipt Home Medical	1.3x	21.8%	CA$204.4m
AKU Akumin	0.09x	17.5%	CA$64.5m
DOC CloudMD Software & Services	0.9x	15.0%	CA$121.9m

Forward PS

Price-To-Sales vs Peers: DOC is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.6x).

Price to Earnings Ratio vs Industry

How does DOC's PE Ratio compare vs other companies in the CA Healthcare Industry?

Price-To-Sales vs Industry: DOC is good value based on its Price-To-Sales Ratio (0.9x) compared to the Canadian Healthcare industry average (1.4x)

Price to Sales Ratio vs Fair Ratio

What is DOC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: DOC is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Share Price vs Fair Value

What is the Fair Price of DOC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOC (CA$0.42) is trading below our estimate of fair value (CA$0.56)

Significantly Below Fair Value: DOC is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DOC's PEG Ratio to determine if it is good value.

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Future Growth

How is CloudMD Software & Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

45.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DOC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DOC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DOC's revenue (15% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: DOC's revenue (15% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if DOC's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has CloudMD Software & Services performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-66.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DOC is currently unprofitable.

Growing Profit Margin: DOC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DOC is unprofitable, and losses have increased over the past 5 years at a rate of 66.5% per year.

Accelerating Growth: Unable to compare DOC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DOC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-68.2%).

Return on Equity

High ROE: DOC has a negative Return on Equity (-11.52%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is CloudMD Software & Services's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DOC's short term assets (CA$84.4M) exceed its short term liabilities (CA$57.2M).

Long Term Liabilities: DOC's short term assets (CA$84.4M) exceed its long term liabilities (CA$53.3M).

Debt to Equity History and Analysis

Debt Level: DOC has more cash than its total debt.

Reducing Debt: DOC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DOC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DOC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is CloudMD Software & Services's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DOC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DOC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DOC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DOC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DOC has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure

CEO

Karen Adams

Tenure

Ms. Karen Adams, MD, serves as President at CloudMD Software & Services Inc. since June 21, 2021 and served as Chief Health Innovation Officer since September 2020. She serves as Chief Executive Officer at...

Leadership Team

Experienced Management: DOC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: DOC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: DOC insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31